Kamlesh Shah, a resident of Science City Road, has been implicated in a widespread scam that defrauded the Income Tax Department in at least 60 cases nationwide. Shah reportedly created fake backdated documents to claim confiscated cash during IT raids as his own, returning the money to its original owners in exchange for a substantial commission.
How the Fraud Unfolded
Shah worked alongside his wife, Meena Shah, and associates Devang Jagdish Vyas, Gaurang Panchal of Navrangpura, and Ramesh Thakkar. Businesses such as N R Company in Ratanpole and ND Gold Jewellery LLP on CG Road were reportedly complicit in the scheme.
Shah’s strategy was both bold and ingenious. Following Income Tax raids in cities like Ahmedabad, Delhi, and Mumbai, he would swiftly produce forged backdated documents claiming the confiscated cash was part of his agricultural business—a sector largely transacted in cash and exempt from tax scrutiny. By exploiting this loophole, Shah was able to convince officials to release the funds.
The Scam’s Modus Operandi
Under Indian tax laws, confiscated cash is subject to a 77% tax, a 6% penalty, and additional interest, which often exceeds the cash’s actual value. Shah positioned himself as a savior for businesses, offering to “legitimize” their seized money.
Using fabricated documentation, he claimed ownership of the funds and secured their release. Once the IT Department returned the money, Shah handed it back to the businesses or their promoters, pocketing a 30% commission.
The scam benefited businesses seeking to avoid hefty penalties and earned Shah massive profits, allowing him to operate on a large scale across multiple states.
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